The gambling market has always been the one well-developed. Despite the government’s tough regulation, this business remains extremely profitable and, moreover, benefits the economy. Accordingly, the competition level is also incredibly high and it has only increased with the improvement of online gambling over the past two decades. This pushes weaker players and especially newcomers to consider establishing operations in foreign untapped markets in the first place (while for the big players it’s rather “extending” move) – but even then companies should meet certain criteria to withstand rivalry.
Competition strategies: land-based gambling
- Activity in related fields.
Large companies like SJM Holdings Limited, Caesars Entertainment Corp., Genting Group, MGM Resorts International, LV Sands Corp. that control the overwhelming share of the land-based casino market (about five hundred casinos worldwide) are always also involved in neighboring industries: hotels, resorts, entertainment, and tourism. That’s why in order to withstand the competition, they (besides modernizing old services and skillfully integrating the new ones; loyalty rewards program) hold some recreational activities, concerts, shows and ensure cooperation between a casino and, for example, its hotel. It is also taken into account that casino’s interior subtleties (such as the absence of windows and clocks and even a peculiar smell) are crucial from a commercial point of view.
- Legislative changes provide new opportunities.
Economical (relation with other markets) and social (citizens’ attitude) reasons make the gambling dependence on the government jurisdictions changeable. The USA experience has shown clearly that moving the legal boundary in particular states can fundamentally affect the whole country business condition (like it has been happening for the last five-six years, during which New York, Pennsylvania, Maryland and some other states legalized gambling almost entirely – that took a part of the revenues from huge gaming areas like Las Vegas Strip and Atlantic City and, consequently, a part of tax revenues from the states of Nevada and New Jersey). This is perhaps the only chance for newcomers to gain a foothold in the domestic market (and not just in the United States – changes in the legislation of Australia or India would allow them to serve own citizens).
Competition strategies: online gambling
The number of gambling websites increases almost daily – not least because of the relative cheapness and quickness of entering this stage (there are no more than 10 companies producing appropriate software: Microgaming, Amaya Inc., Playtech, etc.). Yet there exist much fewer factors that affect user demand. Basically, all of them are defined by the actual quality of services provided.
- Provision of security, fairness, uninterrupted connection and fast money transferring – simply saying to realize all the online benefits.
- Bonuses and trials for real winnings.
The utility of various welcome and intermediate bonuses along with no-deposit revenue-generating games (like when free slots win real money) attracts new audiences and hold market positions.
If talking about betting and lotteries, these gambling forms are mostly defined by offered odds on events of interest and the jackpot size respectively.